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UPDATE 1-Oil services firm TechnipFMC to split into two publicly traded companies

Liz Hampton and Arathy S Nair

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Aug 26 (Reuters) - Franco-American oil services firm TechnipFMC Plc said on Monday it would split its technology and services business from its engineering and construction operations to form two publicly traded companies.

The company, which had a market capitalization of $10.31 billion as of Friday, said the deal is expected to be structured as a spin-off of its onshore and offshore oil and gas businesses, which manages large engineering, procurement, and construction projects.

The split comes nearly three years after Technip merged with rival FMC Technologies, creating a leading offshore services company with combined revenue of $20 billion. That deal closed near the nadir of an oil-price crash, when U.S. crude futures fell to about $26 a barrel and prompted cutbacks in spending on new offshore oil and gas development projects.

Shares of TechnipFMC rose about 5.9% following the news.

The move is "in the best interest of TechnipFMC and all of our stakeholders to create two diversified pure-play leaders," Chief Executive Doug Pferdehirt said in a release.

Pferdehirt will remain CEO for the upstream-focused company, which will be based Houston and focus on subsea technologies and services. The company will have a workforce of about 22,000.

Catherine MacGregor, who joined TechnipFMC's New Ventures group last month after more than two decades at Schlumberger NV , will head up the other business, which will focus on engineering and construction services, and broaden its footprint to include biofuels and alternative energy.

That company will be based in Paris and have about 15,000 employees. (Reporting by Arathy S Nair in Bengaluru; Editing by Maju Samuel and Richard Chang)